In luxury, real estate can still reach record prices. With a slight drop in sales in the entire market, prices are maintained or exceed records for exceptional properties in Paris or the French Riviera.
While the new real estate market has been at a standstill for months, and the old one is struggling to find new balances, the luxury and high-end segment continues to do well.
Far from everything triumphalism and with a reasonably marked decline in sales, this niche still has an undeniable appetite for the most beautiful goods. And with high-budget customers not needing bank financing, prices can still post record highs.
An exceptional year in Paris
In the Michaël Zingraf network, present in Paris for only three years, we are claiming a rare sale at more than 80,000 euros per square meter in the capital. “This is an exceptional year for our network with ten sales exceeding 10 million and two others in progress which should be recorded before the end of the year,” underlines Jean-Claude Annaert, general manager of the brand.
Among them, there are even two which exceed 20 million euros. That’s twice as many sales over 10 million as last year.” Except for one Parisian sale, all the others occurred in the south of France: six in the Cannes area, four around Saint-Tropez and one in Saint-Jean-Cap-Ferrat.
Further proof that huge figures are always in order is that the network announces having brought in two other properties with incredible price tags: 200 million and 350 million euros. If the volume of activity falls by almost 20% with less than 150 sales, the network claims a slight drop in turnover, slightly above 20 million euros.
A bastide in the Alpilles at 27 million
At Emile Garcin, we cite the exact figure of 20% for the decline in activity and 15% in turnover with more than 220 transactions. “The years 2021 and 2022 were fabulous, particularly with the return of many foreigners to Paris,” underlines Nathalie Garcin, co-president of the brand.
If we compare ourselves to 2020, we remain 20% above.” And there, too, despite sales often taking more prolonged and more difficult to conclude, the group notably sold a bastide in the Alpilles with 40 hectares of land for the trifle of 27 million euros or even a transaction for 25 million in Saint-Tropez.
Even more surprising, the network sold an apartment in Dinard for 3.5 million euros. In this network, which claims to be a “character” real estate specialist, the French make up 80% of the clientele, despite Americans’ return and Northern Europeans’ presence.
As for the Coldwell Banker network, it also believes that despite the decline in sales, prices are holding up better than those of the “classic” segment. Furthermore, noting that inflation appears to be under control while growth is improving and interest rates may have peaked, the outlook is somewhat reassuring for 2024.
Growth in Paris premium prices
“On our European barometer of real estate prices displayed in 24 cities, it is in France that the growth in premium prices has been the strongest, driven by second homes in the south,” underlines Laurent Demeure, president of Coldwell Banker Europa Realty.
According to figures established by the start-up PriceHubble, it is the cities of Antibes (+14%), Cannes (+10%) and Nice (+9%) which recorded the most significant increases in prices displayed when Nantes ( -4%) and Biarritz (-2%) show declines. The fact remains that these data do not consider the negotiation rate, which this barometer estimates at 8% on the luxury market.
If you want to invest in Paris, contact Ab and Jolanda KUIJER to be your buyer broker in Paris. First contact with our Luxury Boutique Real Estate is made on info@livingonthecotedazur.com
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